2023-07098. Retail Exemptions Adjusted Dollar Limitations

AGENCY:

Food Safety and Inspection Service (FSIS), Department of Agriculture (USDA).

ACTION:

Notice.

SUMMARY:

FSIS is announcing the dollar limitations on the amount of meat and meat products and poultry and poultry products that a retail store can sell to hotels, restaurants, and similar institutions without disqualifying itself for exemption from Federal inspection requirements.

DATES:

Applicable May 8, 2023.

FOR FURTHER INFORMATION CONTACT:

Gina Kouba, Office of Policy and Program Development, Food Safety and Inspection Service, USDA, 1400 Independence Avenue SW, Mailstop 3758, South Building, Washington, DC 20250–3700; (202) 937–4272.

SUPPLEMENTARY INFORMATION:

Background

The Federal Meat Inspection Act (21 U.S.C. 601 et seq.) and the Poultry Products Inspection Act (21 U.S.C. 451 et seq.) provide a comprehensive statutory framework to ensure that meat and meat products and poultry and poultry products prepared for commerce are wholesome, not adulterated, and properly labeled and packaged. Statutory provisions requiring inspection of the processing of meat and meat products and poultry and poultry products do not apply to operations of types traditionally and usually conducted at retail stores and restaurants in regard to products offered for sale to consumers in normal retail quantities (21 U.S.C. 661(c)(2) and 454(c)(2)). FSIS' regulations (9 CFR 303.1(d) and 381.10(d)) elaborate on the conditions under which requirements for inspection do not apply to retail operations involving the preparation of meat and meat products and the processing of poultry and poultry products.

Sales to Hotels, Restaurants, and Similar Institutions

Under the aforementioned regulations, sales to hotels, restaurants, and similar institutions (other than household consumers) disqualify a retail store from exemption if the retail product sales of amenable products exceed either of two maximum limits: 25 percent of the dollar value of the total retail product sales or the calendar year retail dollar limitation set by the FSIS Administrator. The retail dollar limitation is adjusted automatically during the first quarter of the year if the Consumer Price Index (CPI), published by the Bureau of Labor Statistics, shows an increase or decrease of more than $500 in the price of the same volume of product for the previous year. FSIS publishes a notice of the adjusted retail dollar limitations in the Federal Register . (See 9 CFR 303.1(d)(2)(iii)( b) and 381.10(d)(2)(iii)( b).)

The CPI for 2022 reveals an annual average price increase for meat and meat products of 8.20 percent, an average annual price increase for Siluriformes fish and fish products of 9.15 percent, and an annual average price increase for poultry and poultry products of 14.58 percent. When rounded to the nearest $100 dollar, the retail dollar limitation for meat and meat products, including Siluriformes fish and fish products, increased by $7,500 ^[1] and the retail dollar limitation for poultry and poultry products increased by $9,200.^[2] In accordance with 9 CFR 303.1(d)(2)(iii)( b) and 381.10(d)(2)(iii)( b), because the retail dollar limitations for meat and meat products and poultry and poultry products increased by more than $500, FSIS is increasing the dollar limitation on sales to hotels, restaurants, and similar institutions to $98,900 for meat and meat products and to $72,000 for poultry and poultry products for calendar year 2023.

Additional Public Notification

Public awareness of all segments of rulemaking and policy development is important. Consequently, FSIS will announce this Federal Register publication on-line through the FSIS web page located at: https://www.fsis.usda.gov/​federal-register.

FSIS will also announce and provide a link to this Federal Register publication through the FSIS Constituent Update, which is used to provide information regarding FSIS policies, procedures, regulations, Federal Register notices, FSIS public meetings, and other types of information that could affect or would be of interest to our constituents and stakeholders. The Constituent Update is available on the FSIS web page. Through the web page, FSIS can provide information to a much broader, more diverse audience. In addition, FSIS offers an email subscription service which provides automatic and customized access to selected food safety news and information. This service is available at: https://www.fsis.usda.gov/​subscribe. Options range from recalls to export information, regulations, directives, and notices. Customers can add or delete subscriptions themselves and have the option to password protect their accounts.

USDA Non-Discrimination Statement

In accordance with Federal civil rights law and USDA civil rights regulations and policies, USDA, its Mission Areas, agencies, staff offices, employees, and institutions participating in or administering USDA programs are prohibited from discriminating based on race, color, national origin, religion, sex, gender identity (including gender expression), sexual orientation, disability, age, marital status, family/parental status, income derived from a public assistance program, political beliefs, or reprisal or retaliation for prior civil rights activity, in any program or activity conducted or funded by USDA (not all bases apply to all programs). Remedies and complaint filing deadlines vary by program or incident.

Program information may be made available in languages other than English. Persons with disabilities who require alternative means of communication to obtain program information ( e.g., Braille, large print, audiotape, American Sign Language) should contact the responsible Mission Area, agency, or staff office; the USDA TARGET Center at (202) 720–2600 (voice and TTY); or the Federal Relay Service at (800) 877–8339.

To file a program discrimination complaint, a complainant should complete a Form AD–3027, USDA Program Discrimination Complaint Form, which can be obtained online at https://www.ocio.usda.gov/​document/​ad-3027, from any USDA office, by calling (866) 632–9992, or by writing a letter addressed to USDA. The letter must contain the complainant's name, address, telephone number, and a written description of the alleged discriminatory action in sufficient detail to inform the Assistant Secretary for Civil Rights (ASCR) about the nature and date of an alleged civil rights violation. The completed AD–3027 form or letter must be submitted to USDA by:

(1) Mail: U.S. Department of Agriculture, Office of the Assistant Secretary for Civil Rights, 1400 Independence Avenue SW, Washington, DC 20250–9410;

(2) Fax: [phone] or (202) 690–7442; or

(3) Email: [e-mail].

USDA is an equal opportunity provider, employer, and lender.

Paul Kiecker,

Administrator.

Footnotes

1.  The base value for meat and meat products in 2022 was $91,390 rounded to the nearest $100 dollar to $91,400. The base value included $88,669 for meat and meat products and $2,721 to account for Siluriformes fish and fish products. The meat and meat products prices increased by 8.20 percent, or $7,271 ($88,669 × 0.0820 = $7,271), during 2022. The Siluriformes fish and fish products prices increased by 9.15 percent, or $249 ($2,721 × 0.0915 = $249), during 2022. Combined, the value for meat and meat products that includes Siluriformes fish and fish products increased by $7,520 ($7,271 + $249). Since this change is more than $500, the retail dollar limitation is adjusted to $98,900 [($88,669 + $7,271) + ($2,721 + $249) = $98,910 which is rounded to $98,900].

2.  The base value for poultry and poultry products in 2022 was $62,824 rounded to the nearest $100 dollar to $62,800. The poultry and poultry products prices increased by 14.58 percent, or $9,160 ($62,824 × 0.1458 = $9,160), during 2022. Since this change is more than $500, the retail dollar limitation is adjusted to $72,000 ($62,824 + $9,160 = $71,984 rounded to $72,000.)